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Información del Working Paper

Demand response cost analysis and its effect on system planning

T. Freire-Barceló, F. Martín, A. Sánchez


Demand response (DR) is becoming a necessity rather than a choice since its environmentally friendly nature makes it an ideal option for development and deployment in the electricity system, particularly in the high-renewable penetration landscape. However, determining the system costs associated with DR is challenging, as there is ambiguity regarding their allocation. This work uses an enhanced model that optimizes the amount of DR from the residential and services sectors within the system, thereby establishing a range of fixed and variable costs that guarantee a profitable business case for DR implementation. The findings highlight that H&C is the most restrictive technology, as it requires lower costs to achieve a positive business case, followed by DHW and finally the EV flexibility is the one that has wider cost range while still profitable. Furthermore, the consideration of DR costs has been compared with not considering them, thereby justifying their necessity in making optimal investment and operational decisions.

Resumen divulgativo:

Este paper mejora un modelo existente de planificación de expansión de la generación al incorporar la DR como un recurso adicional dentro del sistema para inversión y provisión de servicios energéticos. A través de este modelo, se obtienen el rango de costes de inversión y operación en los que la DR es rentable.

Palabras clave: Demand response cost, Electricity system planning, LCOE, buildings flexibility, profitability analysis.

Fecha de Registro: 05/04/2024


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